Iren Stock Drops 8% After $2 Billion Offering Amid Nvidia Deal Uncertainty

Iren (IREN) stock plummeted nearly 8% in early trading on Monday after announcing a massive $2 billion private offering. This comes as part of its deal with Nvidia, which secured warrants to invest up to $2.1 billion in Iren for AI infrastructure development.

JPMorgan raised its price target on IREN to $46 from $39 while maintaining an 'Underweight' rating due to the circular nature and undefined access to GPUs from Nvidia.

The company granted initial buyers the option to purchase up to an additional $300 million in convertible notes, which will be used to fund hedging strategies reducing potential shareholder dilution. Remaining funds will support general corporate purposes and working capital needs.